Credit Opportunities Strategy

Credit Opportunities Strategy

LIM’s Credit Opportunities strategy concentrates on event-driven corporate credit and special situations. We seek stable, positive, risk-adjusted returns with limited correlation to equity or credit markets. The opportunity set includes underfollowed credits, stressed and distressed debt, levered and post reorganization equities, intra-capital arbitrage and opportunistic positions. Our focus is on short duration opportunities with an emphasis on small- to medium-sized capital structures. We spend substantial time identifying catalysts and analyzing the underlying credit.

Strategy Advantages

Low correlation to stocks and bonds

Performance is not sensitive to general credit or equity trends

Opportunity to extract value from underfollowed credits

Historically has experienced significantly less volatility than the overall stock market

Average duration is typically 2-3 years - natural turnover allows for the opportunity to capture upward movements in short-term rates

Flexibility to supplement holdings by investing in credit and equity shorts with near-term catalysts